In today’s fast-evolving tech landscape, Strategy Inc (MSTR) and SoundHound AI, Inc. (SOUN) stand out as innovative software application companies with distinct yet overlapping market focuses. Strategy Inc leverages AI for enterprise analytics and bitcoin treasury solutions, while SoundHound AI pioneers voice AI platforms for conversational experiences. This article will analyze both firms to help you identify which presents the most compelling investment opportunity in 2026.
Table of contents
Companies Overview
I will begin the comparison between Strategy Inc and SoundHound AI, Inc. by providing an overview of these two companies and their main differences.
Strategy Inc Overview
Strategy Inc operates as a bitcoin treasury company and provides AI-powered enterprise analytics software. It offers investors exposure to Bitcoin through various securities and delivers tools such as Strategy One and Strategy Mosaic for data-driven decision-making. Founded in 1989 and headquartered in Tysons Corner, Virginia, the company serves clients across the US, Europe, the Middle East, Africa, and internationally.
SoundHound AI, Inc. Overview
SoundHound AI, Inc. develops a voice artificial intelligence platform designed to enable businesses to create conversational voice assistants. Its main product, the Houndify platform, offers tools including speech recognition, natural language understanding, and embedded voice solutions. Headquartered in Santa Clara, California, the company focuses on delivering high-quality conversational experiences for various industries.
Key similarities and differences
Both companies operate in the software application industry within the technology sector and trade on NASDAQ. Strategy Inc focuses on bitcoin asset management and enterprise analytics, while SoundHound AI specializes in voice AI platforms for conversational interfaces. Strategy Inc is larger with a market cap of $50B and 1,546 employees, compared to SoundHound AI’s $4.7B market cap and 842 employees, reflecting different scales and business models.
Income Statement Comparison
This table presents a side-by-side view of the key income statement metrics for Strategy Inc and SoundHound AI, Inc. for the fiscal year 2024.
| Metric | Strategy Inc | SoundHound AI, Inc. |
|---|---|---|
| Market Cap | 50.3B USD | 4.7B USD |
| Revenue | 463M USD | 85M USD |
| EBITDA | -1.85B USD | -329M USD |
| EBIT | -1.87B USD | -348M USD |
| Net Income | -1.17B USD | -351M USD |
| EPS | -6.06 | -1.04 |
| Fiscal Year | 2024 | 2024 |
Income Statement Interpretations
Strategy Inc
Strategy Inc’s revenue showed a slight decline of 6.61% in 2024 after a modest overall decrease of 3.59% since 2020. Net income deteriorated sharply with a negative margin of -251.73%, reflecting significant losses despite a stable gross margin near 72%. The 2024 performance worsened from 2023, with lower gross profit and a steep decline in earnings before interest and taxes (EBIT).
SoundHound AI, Inc.
SoundHound AI experienced strong revenue growth of 84.62% in 2024 and over 550% since 2020, supported by an improving gross margin of 48.86%. However, net income remained negative with a -414.06% margin, and EBIT losses deepened substantially. The latest year saw revenue and gross profit growth but worsening EBIT and net margin, indicating continued operational challenges.
Which one has the stronger fundamentals?
Both companies face unfavorable income statement conditions with substantial net losses and negative EBIT margins. Strategy Inc benefits from a higher gross margin but suffers from declining revenue and worsening profitability. SoundHound AI shows robust revenue expansion and some margin improvement overall but continues to post deep losses. Neither company currently demonstrates strong fundamentals based on income statements.
Financial Ratios Comparison
This table presents a side-by-side comparison of key financial ratios for Strategy Inc and SoundHound AI, Inc. based on their most recent fiscal year 2024 data.
| Ratios | Strategy Inc (MSTR) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| ROE | -6.40% | -191.99% |
| ROIC | -4.38% | -68.13% |
| P/E | -47.80 | -19.15 |
| P/B | 3.06 | 36.76 |
| Current Ratio | 0.71 | 3.77 |
| Quick Ratio | 0.71 | 3.77 |
| D/E (Debt-to-Equity) | 0.40 | 0.02 |
| Debt-to-Assets | 28.09% | 0.79% |
| Interest Coverage | -29.92 | -28.05 |
| Asset Turnover | 0.02 | 0.15 |
| Fixed Asset Turnover | 5.73 | 14.28 |
| Payout Ratio | 0 | 0 |
| Dividend Yield | 0% | 0% |
Interpretation of the Ratios
Strategy Inc
Strategy Inc shows mostly unfavorable financial ratios in 2024, including negative net margin (-251.73%) and return on equity (-6.4%), indicating operational and profitability challenges. The company’s current and quick ratios are below 1, suggesting liquidity concerns. It does not pay dividends, likely due to ongoing losses and a focus on reinvestment rather than shareholder distributions.
SoundHound AI, Inc.
SoundHound AI also reports predominantly unfavorable ratios in 2024, with a deeply negative net margin (-414.06%) and return on equity (-191.99%). Despite a strong quick ratio (3.77), its current ratio is flagged unfavorable, reflecting possible liquidity imbalances. The company does not pay dividends, consistent with a high-growth or reinvestment phase in its business lifecycle.
Which one has the best ratios?
Both companies present unfavorable overall ratio profiles, but SoundHound AI has a slightly higher proportion of favorable ratios (35.71%) than Strategy Inc (28.57%). However, both face significant profitability and liquidity challenges, with no dividend payouts, reflecting ongoing operational difficulties and reinvestment priorities.
Strategic Positioning
This section compares the strategic positioning of Strategy Inc and SoundHound AI, Inc., including Market position, Key segments, and exposure to disruption:
Strategy Inc
- Market position and competitive pressure
- Key segments and business drivers
- Exposure to technological disruption
SoundHound AI, Inc.
- Large market cap of 50B with high beta, facing pressure from software application peers.
- Diverse revenue from License, Maintenance, Subscription, and Technology Services.
- Operates in bitcoin treasury and AI enterprise analytics, facing blockchain and AI shifts.
Strategy Inc vs SoundHound AI, Inc. Positioning
Strategy Inc has a diversified business model combining bitcoin treasury and enterprise analytics, offering varied revenue streams. SoundHound AI concentrates on voice AI solutions, focusing on platform tools and services, with a narrower segment scope.
Which has the best competitive advantage?
Both companies are shedding value with ROIC below WACC; Strategy Inc shows declining profitability, while SoundHound AI has improving ROIC, indicating a slightly better but still unfavorable competitive advantage.
Stock Comparison
The stock price movements of Strategy Inc (MSTR) and SoundHound AI, Inc. (SOUN) over the past 12 months reveal significant bullish trends with notable deceleration and recent declines in both securities.
Trend Analysis
Strategy Inc’s stock showed a strong bullish trend over the past year with a 152.71% price increase, though the trend has decelerated. Recent data indicate a 35.55% decline, signaling a short-term bearish phase.
SoundHound AI, Inc. experienced an even larger bullish gain of 183.16% over the last year, also with deceleration. The recent 37.0% drop reflects a short-term bearish trend despite overall strong yearly growth.
Comparing both, SoundHound AI, Inc. delivered the highest market performance over the past 12 months. Both stocks show recent downturns, but their annual gains remain substantially positive.
Target Prices
The current analyst consensus indicates a positive outlook for both Strategy Inc and SoundHound AI, Inc.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Strategy Inc | 705 | 175 | 433.57 |
| SoundHound AI, Inc. | 15 | 11 | 13.33 |
Analysts expect Strategy Inc’s shares to appreciate significantly from the current 173.71 USD, while SoundHound AI, Inc. is also forecasted to rise moderately above its current 11.1 USD price.
Analyst Opinions Comparison
This section compares analysts’ ratings and grades for Strategy Inc and SoundHound AI, Inc.:
Rating Comparison
Strategy Inc Rating
- Rating: A- indicating a very favorable assessment.
- Discounted Cash Flow Score: 1, very unfavorable.
- ROE Score: 4, favorable efficiency in generating profit.
- ROA Score: 5, very favorable asset utilization.
- Debt To Equity Score: 3, moderate financial risk.
- Overall Score: 4, favorable overall financial standing.
SoundHound AI, Inc. Rating
- Rating: C- indicating a very unfavorable assessment.
- Discounted Cash Flow Score: 1, very unfavorable.
- ROE Score: 1, very unfavorable efficiency.
- ROA Score: 1, very unfavorable asset utilization.
- Debt To Equity Score: 4, favorable financial risk.
- Overall Score: 1, very unfavorable overall standing.
Which one is the best rated?
Based strictly on the provided data, Strategy Inc is better rated overall, with a higher rating (A- vs C-) and stronger scores in ROE, ROA, and overall financial standing compared to SoundHound AI, Inc.
Scores Comparison
Here is a comparison of the Altman Z-Score and Piotroski Score for Strategy Inc and SoundHound AI, Inc.:
Strategy Inc Scores
- Altman Z-Score: 2.78, indicating a moderate bankruptcy risk in the grey zone.
- Piotroski Score: 4, representing average financial strength.
SoundHound AI, Inc. Scores
- Altman Z-Score: 6.62, indicating strong financial safety in the safe zone.
- Piotroski Score: 3, indicating very weak financial strength.
Which company has the best scores?
SoundHound AI, Inc. scores higher on the Altman Z-Score, showing strong financial safety. Strategy Inc has a better Piotroski Score, reflecting relatively stronger financial health compared to SoundHound AI.
Grades Comparison
The following section presents a detailed comparison of recent grades assigned to Strategy Inc and SoundHound AI, Inc.:
Strategy Inc Grades
This table summarizes the latest grades from notable grading companies for Strategy Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Mizuho | Maintain | Outperform | 2026-01-16 |
| TD Cowen | Maintain | Buy | 2026-01-15 |
| Citigroup | Maintain | Buy | 2025-12-22 |
| Bernstein | Maintain | Outperform | 2025-12-08 |
| Monness, Crespi, Hardt | Upgrade | Neutral | 2025-11-10 |
| HC Wainwright & Co. | Maintain | Buy | 2025-11-03 |
| Canaccord Genuity | Maintain | Buy | 2025-11-03 |
| BTIG | Maintain | Buy | 2025-10-31 |
| Cantor Fitzgerald | Maintain | Overweight | 2025-10-31 |
| TD Cowen | Maintain | Buy | 2025-10-31 |
Overall, Strategy Inc exhibits a strong positive trend in ratings, predominantly Buy and Outperform grades, with only one recent upgrade from Sell to Neutral.
SoundHound AI, Inc. Grades
The following table shows recent grades issued by recognized analysts for SoundHound AI, Inc.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Piper Sandler | Maintain | Neutral | 2026-01-05 |
| Cantor Fitzgerald | Upgrade | Overweight | 2025-12-12 |
| DA Davidson | Maintain | Buy | 2025-11-18 |
| Piper Sandler | Maintain | Neutral | 2025-11-07 |
| HC Wainwright & Co. | Maintain | Buy | 2025-10-16 |
| HC Wainwright & Co. | Maintain | Buy | 2025-09-17 |
| Wedbush | Maintain | Outperform | 2025-09-11 |
| DA Davidson | Maintain | Buy | 2025-09-10 |
| Ladenburg Thalmann | Upgrade | Buy | 2025-08-11 |
| Wedbush | Maintain | Outperform | 2025-08-08 |
SoundHound AI, Inc. shows a generally positive rating pattern, with multiple Buy and Outperform grades and a few recent upgrades from Neutral to Overweight and Buy.
Which company has the best grades?
Strategy Inc has received more consistent Buy and Outperform ratings from a broader range of analysts compared to SoundHound AI, Inc., which has a mix of Neutral and Buy recommendations. This difference may influence investor sentiment and risk perception in portfolio allocation.
Strengths and Weaknesses
Below is a comparative overview of key strengths and weaknesses for Strategy Inc (MSTR) and SoundHound AI, Inc. (SOUN) based on the most recent financial and operational data.
| Criterion | Strategy Inc (MSTR) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| Diversification | Diverse revenue streams: License, Maintenance (dominant), Subscription, Technology Service | Multiple segments: Hosted Services (largest), Licensing, Professional Service |
| Profitability | Negative margins and ROIC; shedding value with declining profitability | Negative margins and ROIC; shedding value but improving profitability trend |
| Innovation | Moderate innovation focus; stable technology service revenue (~64M) | Focused on AI-driven services; growing hosted services revenue (57M in 2024) |
| Global presence | Established global footprint, mature market presence | Emerging global presence, expanding AI market reach |
| Market Share | Strong position in enterprise software licensing and maintenance | Growing but smaller market share in AI voice and conversational platforms |
Key takeaways: Both companies face profitability challenges with negative returns on capital, but SoundHound shows improving ROIC trends and growth in AI-driven hosted services. Strategy Inc benefits from a diversified and stable revenue base but is currently value destructive. Investors should weigh innovation potential against financial risks.
Risk Analysis
Below is a comparative overview of key risks for Strategy Inc (MSTR) and SoundHound AI, Inc. (SOUN) based on the most recent data from 2024.
| Metric | Strategy Inc (MSTR) | SoundHound AI, Inc. (SOUN) |
|---|---|---|
| Market Risk | High beta 3.43, volatile price range (149.75-457.22) | High beta 2.88, volatile price range (6.52-22.17) |
| Debt level | Moderate debt-to-equity 0.4, debt/assets 28.1% | Very low debt-to-equity 0.02, debt/assets 0.79% |
| Regulatory Risk | Exposure to bitcoin-related regulations internationally | Exposure to AI and data privacy regulations in US |
| Operational Risk | Reliance on bitcoin market and AI software products | Dependence on voice AI tech adoption and platform usage |
| Environmental Risk | Low direct impact, tech sector focus | Low direct impact, tech sector focus |
| Geopolitical Risk | International bitcoin exposure in volatile regions | Mainly US-focused, less geopolitical exposure |
The most likely and impactful risks are market volatility and regulatory challenges for Strategy Inc, given its significant bitcoin treasury exposure and high stock beta. SoundHound faces operational risks tied to AI adoption and regulatory uncertainties surrounding AI and data privacy. Both companies show no significant environmental risks, but Strategy’s international presence adds geopolitical risk. Risk management should focus on these areas for prudent investment decisions.
Which Stock to Choose?
Strategy Inc (MSTR) shows declining income with a 6.61% revenue drop in 2024 and generally unfavorable profitability metrics, including negative returns on equity and invested capital. Its debt levels are moderate, supported by a favorable debt-to-equity ratio, but overall financial ratios and income statement evaluations remain unfavorable despite a strong overall rating of A-.
SoundHound AI, Inc. (SOUN) exhibits strong revenue growth of 84.62% in 2024 but suffers from poor profitability with large negative net margins and negative returns on equity. The company maintains very low debt levels and a strong quick ratio, yet its financial ratios and income evaluations are largely unfavorable, reflected in a lower overall rating of C-.
For investors, the choice might appear to depend on risk tolerance: those seeking a company with a higher credit rating and more stability might lean towards Strategy Inc, while investors willing to accept higher risk for growth potential could consider SoundHound AI, given its rapid revenue expansion despite ongoing profitability challenges. Both companies show unfavorable global income and financial ratios, suggesting caution.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Strategy Inc and SoundHound AI, Inc. to enhance your investment decisions:
